The power stations will be fueled by syngas produced from Carbon Energy’s Bloodwood Creek coal resource near Kogan.
Arcadia will initially sign a long term power purchase agreement to buy all the electricity produced form Carbon Energy’s 25MW power station, to be located adjacent to the company’s existing 5MW plant at Bloodwood Creek.
It is intended that Arcadia will acquire this power station once Carbon Energy secures long term tenure over its coal rights in the form of a mining lease and subject to some commercial conditions being met.
Carbon Energy will then supply syngas under a long term gas supply agreement to Arcadia as owners of the power station.
The companies will also partner in the development of the 300MW power station at the planned Blue Gum Energy Park near Kogan, and Arcadia will own the station and be the first customer for the Blue Gum Energy Park to enter into a long term gas supply agreement.
